Canadian Investor Protection Fund - CIPF


DEFINITION of 'Canadian Investor Protection Fund - CIPF'

A Canadian not-for-profit organization set up by the investment industry designed to protect investors from the bankruptcy of an individual investment firm.

Accounts are covered for up to $1 million in shortfall of securities, commodity and futures contracts, segregated insurance funds and cash. Shortfall is the difference between the market value of the account and what the insolvent company can return to the customer.

BREAKING DOWN 'Canadian Investor Protection Fund - CIPF'

While investment firms rarely become insolvent, the CIPF exists to protect the investment accounts of customers.

The size of the fund's resources is close to $300 million.

  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Solvency

    The ability of a company to meet its long-term financial obligations. ...
  3. Shortfall

    The amount by which a financial obligation or liability exceeds ...
  4. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  5. Investment

    An asset or item that is purchased with the hope that it will ...
  6. Futures Contract

    A contractual agreement, generally made on the trading floor ...
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